diff --git a/packages/block-editor/src/components/button-block-appender/index.js b/packages/block-editor/src/components/button-block-appender/index.js
index 4cde8c26d75638..930be5b0a58407 100644
--- a/packages/block-editor/src/components/button-block-appender/index.js
+++ b/packages/block-editor/src/components/button-block-appender/index.js
@@ -37,21 +37,49 @@ function ButtonBlockAppender(
 				isOpen,
 				blockTitle,
 				hasSingleBlockType,
+				defaultBlock,
+				defaultBlockType,
 			} ) => {
 				const isToggleButton = ! hasSingleBlockType;
-				const label = hasSingleBlockType
-					? sprintf(
-							// translators: %s: the name of the block when there is only one
-							_x(
-								'Add %s',
-								'directly add the only allowed block'
-							),
-							blockTitle
-					  )
-					: _x(
-							'Add block',
-							'Generic label for block inserter button'
-					  );
+
+				// Get appender label from block's __experimentalLabel function
+				const appenderLabel =
+					defaultBlock &&
+					defaultBlock.attributes &&
+					defaultBlockType?.__experimentalLabel
+						? ( () => {
+								const result =
+									defaultBlockType.__experimentalLabel(
+										defaultBlock.attributes,
+										{ context: 'appender' }
+									);
+								// Only use if it's a string and not too long (safety check)
+								return typeof result === 'string' &&
+									result.length < 50
+									? result.toLowerCase()
+									: null;
+						  } )()
+						: null;
+
+				let label;
+				if ( hasSingleBlockType ) {
+					label = sprintf(
+						// translators: %s: the name of the block when there is only one
+						_x( 'Add %s', 'directly add the only allowed block' ),
+						blockTitle.toLowerCase()
+					);
+				} else if ( appenderLabel ) {
+					label = sprintf(
+						// translators: %s: the appender label for the default block
+						_x( 'Add %s', 'add default block type' ),
+						appenderLabel
+					);
+				} else {
+					label = _x(
+						'Add block',
+						'Generic label for block inserter button'
+					);
+				}
 
 				return (
 					<Button
diff --git a/packages/block-editor/src/components/inserter/index.js b/packages/block-editor/src/components/inserter/index.js
index 8786536b427134..4921435fcfcfb6 100644
--- a/packages/block-editor/src/components/inserter/index.js
+++ b/packages/block-editor/src/components/inserter/index.js
@@ -28,6 +28,8 @@ const defaultRenderToggle = ( {
 	isOpen,
 	blockTitle,
 	hasSingleBlockType,
+	defaultBlock,
+	defaultBlockType,
 	toggleProps = {},
 } ) => {
 	const {
@@ -42,10 +44,38 @@ const defaultRenderToggle = ( {
 		label = sprintf(
 			// translators: %s: the name of the block when there is only one
 			_x( 'Add %s', 'directly add the only allowed block' ),
-			blockTitle
+			blockTitle.toLowerCase()
 		);
 	} else if ( ! label ) {
-		label = _x( 'Add block', 'Generic label for block inserter button' );
+		// Get appender label from block's __experimentalLabel function
+		const appenderLabel =
+			defaultBlock &&
+			defaultBlock.attributes &&
+			defaultBlockType?.__experimentalLabel
+				? ( () => {
+						const result = defaultBlockType.__experimentalLabel(
+							defaultBlock.attributes,
+							{ context: 'appender' }
+						);
+						// Only use if it's a string and not too long (safety check)
+						return typeof result === 'string' && result.length < 50
+							? result.toLowerCase()
+							: null;
+				  } )()
+				: null;
+
+		if ( appenderLabel ) {
+			label = sprintf(
+				// translators: %s: the appender label for the default block
+				_x( 'Add %s', 'add default block type' ),
+				appenderLabel
+			);
+		} else {
+			label = _x(
+				'Add block',
+				'Generic label for block inserter button'
+			);
+		}
 	}
 
 	// Handle both onClick functions from the toggle and the parent component.
@@ -108,6 +138,7 @@ class Inserter extends Component {
 			blockTitle,
 			hasSingleBlockType,
 			directInsertBlock,
+			defaultBlockType,
 			toggleProps,
 			hasItems,
 			renderToggle = defaultRenderToggle,
@@ -119,7 +150,8 @@ class Inserter extends Component {
 			disabled: disabled || ! hasItems,
 			blockTitle,
 			hasSingleBlockType,
-			directInsertBlock,
+			defaultBlock: directInsertBlock,
+			defaultBlockType,
 			toggleProps,
 		} );
 	}
@@ -226,7 +258,7 @@ export default compose( [
 				getDirectInsertBlock,
 			} = select( blockEditorStore );
 
-			const { getBlockVariations } = select( blocksStore );
+			const { getBlockVariations, getBlockType } = select( blocksStore );
 
 			rootClientId =
 				rootClientId || getBlockRootClientId( clientId ) || undefined;
@@ -246,12 +278,17 @@ export default compose( [
 				allowedBlockType = allowedBlocks[ 0 ];
 			}
 
+			const defaultBlockType = directInsertBlock
+				? getBlockType( directInsertBlock.name )
+				: null;
+
 			return {
 				hasItems: hasInserterItems( rootClientId ),
 				hasSingleBlockType,
 				blockTitle: allowedBlockType ? allowedBlockType.title : '',
 				allowedBlockType,
 				directInsertBlock,
+				defaultBlockType,
 				rootClientId,
 			};
 		}
diff --git a/packages/block-editor/src/components/inserter/test/default-render-toggle.js b/packages/block-editor/src/components/inserter/test/default-render-toggle.js
new file mode 100644
index 00000000000000..1ec0620f5eccac
--- /dev/null
+++ b/packages/block-editor/src/components/inserter/test/default-render-toggle.js
@@ -0,0 +1,318 @@
+/**
+ * External dependencies
+ */
+import { render, screen } from '@testing-library/react';
+
+/**
+ * Internal dependencies
+ */
+import Inserter from '../index';
+
+// We need to test the defaultRenderToggle function, but it's not exported
+// So we'll test it through the Inserter component by not providing a custom renderToggle
+
+describe( 'Inserter defaultRenderToggle', () => {
+	// Mock the InserterMenu and QuickInserter to avoid complex dependencies
+	jest.mock( '../menu', () => {
+		return function MockInserterMenu() {
+			return <div data-testid="mock-inserter-menu" />;
+		};
+	} );
+
+	jest.mock( '../quick-inserter', () => {
+		return function MockQuickInserter() {
+			return <div data-testid="mock-quick-inserter" />;
+		};
+	} );
+
+	// Mock the store selectors
+	const mockSelect = jest.fn();
+	jest.mock( '@wordpress/data', () => ( {
+		useSelect: () => mockSelect(),
+		withSelect: () => ( Component ) => Component,
+		withDispatch: () => ( Component ) => Component,
+	} ) );
+
+	beforeEach( () => {
+		jest.clearAllMocks();
+	} );
+
+	describe( 'Appender Label Functionality', () => {
+		it( 'should show "Add block" when no defaultBlock is provided', () => {
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: null,
+				defaultBlockType: null,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			// The defaultRenderToggle should render a button with "Add block" label
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add block' );
+		} );
+
+		it( 'should show "Add {blockTitle}" when hasSingleBlockType is true', () => {
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: true,
+				blockTitle: 'Paragraph',
+				allowedBlockType: {
+					name: 'core/paragraph',
+					title: 'Paragraph',
+				},
+				directInsertBlock: null,
+				defaultBlockType: null,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			// The defaultRenderToggle should render a button with "Add paragraph" label (lowercase)
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add paragraph' );
+		} );
+
+		it( 'should show appender label when defaultBlock has __experimentalLabel with appender context', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn( ( attributes, { context } ) => {
+					if ( context === 'appender' ) {
+						return attributes.type || 'item';
+					}
+					return 'Test Block';
+				} ),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				attributes: {
+					type: 'page',
+				},
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			expect( mockBlockType.__experimentalLabel ).toHaveBeenCalledWith(
+				{ type: 'page' },
+				{ context: 'appender' }
+			);
+
+			// The defaultRenderToggle should render a button with "Add page" label
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add page' );
+		} );
+
+		it( 'should convert appender label to lowercase', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn( ( attributes, { context } ) => {
+					if ( context === 'appender' ) {
+						return 'PAGE'; // Return uppercase
+					}
+					return 'Test Block';
+				} ),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				attributes: {
+					type: 'page',
+				},
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			expect( mockBlockType.__experimentalLabel ).toHaveBeenCalledWith(
+				{ type: 'page' },
+				{ context: 'appender' }
+			);
+
+			// The label should be "Add page" (lowercase)
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add page' );
+		} );
+
+		it( 'should fall back to "Add block" when __experimentalLabel returns invalid result', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn( ( attributes, { context } ) => {
+					if ( context === 'appender' ) {
+						return null; // Return invalid result
+					}
+					return 'Test Block';
+				} ),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				attributes: {
+					type: 'page',
+				},
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			expect( mockBlockType.__experimentalLabel ).toHaveBeenCalledWith(
+				{ type: 'page' },
+				{ context: 'appender' }
+			);
+
+			// Should fall back to "Add block"
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add block' );
+		} );
+
+		it( 'should reject appender labels longer than 50 characters', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn( ( attributes, { context } ) => {
+					if ( context === 'appender' ) {
+						return 'This is a very long appender label that exceeds the maximum length limit of fifty characters';
+					}
+					return 'Test Block';
+				} ),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				attributes: {
+					type: 'page',
+				},
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			expect( mockBlockType.__experimentalLabel ).toHaveBeenCalledWith(
+				{ type: 'page' },
+				{ context: 'appender' }
+			);
+
+			// Should fall back to "Add block" due to length limit
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add block' );
+		} );
+
+		it( 'should handle missing defaultBlock.attributes gracefully', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn(),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				// Missing attributes property
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: false,
+				blockTitle: '',
+				allowedBlockType: null,
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			// Should not call __experimentalLabel when attributes are missing
+			expect( mockBlockType.__experimentalLabel ).not.toHaveBeenCalled();
+
+			// Should fall back to "Add block"
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add block' );
+		} );
+
+		it( 'should prioritize single block type over appender label', () => {
+			const mockBlockType = {
+				name: 'core/test-block',
+				title: 'Test Block',
+				__experimentalLabel: jest.fn( ( attributes, { context } ) => {
+					if ( context === 'appender' ) {
+						return 'page';
+					}
+					return 'Test Block';
+				} ),
+			};
+
+			const defaultBlock = {
+				name: 'core/test-block',
+				attributes: {
+					type: 'page',
+				},
+			};
+
+			mockSelect.mockReturnValue( {
+				hasItems: true,
+				hasSingleBlockType: true,
+				blockTitle: 'Paragraph',
+				allowedBlockType: {
+					name: 'core/paragraph',
+					title: 'Paragraph',
+				},
+				directInsertBlock: defaultBlock,
+				defaultBlockType: mockBlockType,
+				rootClientId: 'test-client-id',
+			} );
+
+			render( <Inserter rootClientId="test-client-id" /> );
+
+			// Should not call __experimentalLabel when hasSingleBlockType is true
+			expect( mockBlockType.__experimentalLabel ).not.toHaveBeenCalled();
+
+			// Should show "Add paragraph" (single block type takes priority)
+			const button = screen.getByRole( 'button' );
+			expect( button ).toHaveTextContent( 'Add paragraph' );
+		} );
+	} );
+} );
diff --git a/packages/block-library/src/navigation-link/index.js b/packages/block-library/src/navigation-link/index.js
index 3d1f0207ff955a..88d3ba11502c68 100644
--- a/packages/block-library/src/navigation-link/index.js
+++ b/packages/block-library/src/navigation-link/index.js
@@ -23,7 +23,21 @@ export { metadata, name };
 export const settings = {
 	icon: linkIcon,
 
-	__experimentalLabel: ( { label } ) => label,
+	__experimentalLabel( attributes, { context } ) {
+		if ( context === 'list-view' ) {
+			return attributes?.label;
+		}
+
+		if ( context === 'appender' ) {
+			if ( attributes?.kind === 'post-type' ) {
+				return attributes.type; // 'page', 'post', etc.
+			}
+			if ( attributes?.kind === 'taxonomy' ) {
+				return attributes.type; // 'category', 'tag', etc.
+			}
+			return 'link';
+		}
+	},
 
 	merge( leftAttributes, { label: rightLabel = '' } ) {
 		return {
diff --git a/packages/block-library/src/navigation-link/test/block-labelling.js b/packages/block-library/src/navigation-link/test/block-labelling.js
new file mode 100644
index 00000000000000..baf0f57f8a4cd2
--- /dev/null
+++ b/packages/block-library/src/navigation-link/test/block-labelling.js
@@ -0,0 +1,231 @@
+/**
+ * WordPress dependencies
+ */
+import { registerBlockType, unregisterBlockType } from '@wordpress/blocks';
+
+/**
+ * Internal dependencies
+ */
+import { settings } from '../index';
+
+describe( 'Navigation Link Block Labelling', () => {
+	beforeEach( () => {
+		// Register the navigation link block for testing
+		registerBlockType( 'core/navigation-link', {
+			...settings,
+			name: 'core/navigation-link',
+			title: 'Navigation Link', // Add required title
+			category: 'design', // Add required category
+			attributes: {}, // Add required attributes
+		} );
+	} );
+
+	afterEach( () => {
+		// Clean up
+		unregisterBlockType( 'core/navigation-link' );
+	} );
+
+	describe( 'appender context', () => {
+		it( 'should return "page" for post-type with type "page"', () => {
+			const attributes = {
+				kind: 'post-type',
+				type: 'page',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'page' );
+		} );
+
+		it( 'should return "post" for post-type with type "post"', () => {
+			const attributes = {
+				kind: 'post-type',
+				type: 'post',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'post' );
+		} );
+
+		it( 'should return "category" for taxonomy with type "category"', () => {
+			const attributes = {
+				kind: 'taxonomy',
+				type: 'category',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'category' );
+		} );
+
+		it( 'should return "tag" for taxonomy with type "post_tag"', () => {
+			const attributes = {
+				kind: 'taxonomy',
+				type: 'post_tag',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'post_tag' );
+		} );
+
+		it( 'should return "link" for unknown kind', () => {
+			const attributes = {
+				kind: 'unknown',
+				type: 'something',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'link' );
+		} );
+
+		it( 'should return "link" when kind is missing', () => {
+			const attributes = {
+				type: 'page',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'link' );
+		} );
+
+		it( 'should return "link" when attributes are empty', () => {
+			const attributes = {};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'link' );
+		} );
+
+		it( 'should return "link" when attributes are null', () => {
+			const result = settings.__experimentalLabel( null, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'link' );
+		} );
+
+		it( 'should return "link" when attributes are undefined', () => {
+			const result = settings.__experimentalLabel( undefined, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'link' );
+		} );
+
+		it( 'should handle custom post types', () => {
+			const attributes = {
+				kind: 'post-type',
+				type: 'product',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'product' );
+		} );
+
+		it( 'should handle custom taxonomies', () => {
+			const attributes = {
+				kind: 'taxonomy',
+				type: 'product_category',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'appender',
+			} );
+
+			expect( result ).toBe( 'product_category' );
+		} );
+	} );
+
+	describe( 'other contexts', () => {
+		it( 'should return label for list-view context', () => {
+			const attributes = {
+				label: 'Home Page',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'list-view',
+			} );
+
+			expect( result ).toBe( 'Home Page' );
+		} );
+
+		it( 'should return undefined for unknown context', () => {
+			const attributes = {
+				kind: 'post-type',
+				type: 'page',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {
+				context: 'unknown',
+			} );
+
+			expect( result ).toBeUndefined();
+		} );
+
+		it( 'should return undefined when no context is provided', () => {
+			const attributes = {
+				kind: 'post-type',
+				type: 'page',
+			};
+
+			const result = settings.__experimentalLabel( attributes, {} );
+
+			expect( result ).toBeUndefined();
+		} );
+	} );
+
+	describe( 'Navigation Block DEFAULT_BLOCK integration', () => {
+		it( 'should work with Navigation block default block attributes', () => {
+			// This simulates the DEFAULT_BLOCK from Navigation block constants
+			const defaultBlockAttributes = {
+				kind: 'post-type',
+				type: 'page',
+			};
+
+			const result = settings.__experimentalLabel(
+				defaultBlockAttributes,
+				{
+					context: 'appender',
+				}
+			);
+
+			expect( result ).toBe( 'page' );
+		} );
+
+		it( 'should work with Navigation block default block for posts', () => {
+			const defaultBlockAttributes = {
+				kind: 'post-type',
+				type: 'post',
+			};
+
+			const result = settings.__experimentalLabel(
+				defaultBlockAttributes,
+				{
+					context: 'appender',
+				}
+			);
+
+			expect( result ).toBe( 'post' );
+		} );
+	} );
+} );